A business owner can find his or her VAT number on the VAT registration certificate. The effective date of VAT registration and when to make the first VAT return payment is also listed on the certificate.
Any business making more than 81,000 pounds per year must pay VAT taxes. The only businesses exempt from the VAT tax are those that make less than this amount or those businesses that only sell exempt goods.
Even some North American companies must apply for a VAT number. American companies that regularly conduct business in a VAT country should obtain a VAT number, even if the company does not sell or purchase goods from these countries. Although this is legally required, American companies may be entitled to a refund on VAT charges. Companies obtaining a VAT form are required to complete regular VAT returns.
Once a company registers for a VAT number, it is responsible for keeping adequate VAT records, charging and paying the appropriate VAT tax, and promptly paying the correct amount of VAT due to the appropriate agency. However, while a company waits for a VAT number, it cannot charge VAT to its customers. Once a number has been received, VAT taxes can be charged and invoices can be reissued to customers.